Section 7 Certification to state treasurer; payment of debt service; costs assessed - Massachusetts Statutes

Section 7. The treasurer of each city, town or regional school district which issues qualified bonds shall certify to the state treasurer the maturity schedule, interest rate, and dates of payment of debt service on the qualified bonds within ten days after the date of issuance of the qualified bonds. The state treasurer or the paying agents approved by him shall become the paying agents for the principal and interest on such qualified bonds. The state treasurer shall pay such debt service and after payment shall withhold from the distributable aid payable to the city, town or regional school district an amount which will be sufficient to pay the debt service on the qualified bonds or, if the amount of such distributable aid in any year is insufficient for this purpose, from any other amounts payable by the commonwealth to such city, town or regional school district under any provision of law. From the time withheld by the state treasurer, all such distributable aid or other amounts so withheld and paid shall be exempt from being levied upon, taken, sequestered, or applied toward paying the debts of the city, town or regional school district other than for payment of debt service on such qualified bonds.

All costs accruing to the commonwealth as the result of such qualified bond issues, including administrative costs as well as loss of interest income, shall be the liability of the city, town or regional school district and shall be assessed in accordance with section twenty of chapter fifty-eight.